An Empirical Study of Contract Governance and Relationship Governance and their Impact on Construction Project Performance

Peng Mengdi; Fadilah Puteh; Asiyah Kassim

doi:10.21834/e-bpj.v9iSI22.5879

Authors

Peng Mengdi Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia
Fadilah Puteh Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia
Asiyah Kassim Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v9iSI22.5879

Keywords:

Construction Project, Contractual Governance, Relational Governance

Abstract

The construction industry holds a pillar position in the national economy, but its efficiency paradox is increasingly prominent. An important finding of this study is that there is no contradictory relationship between contract incentives and contract adaptation in construction projects, that is, contract governance in construction projects can achieve both contract incentives and contract adaptation effects, both of which can promote project performance. This contradicts the opposing relationship between contract incentives and contract adaptation supported by existing research, which suggests that the enhancement of one effect always comes at the cost of the weakening of another effect.

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